Nestle India Q2 preview: PAT to likely register 5% decline YoY; margins may narrow down by 50bps
Amid volatility in food prices and inflationary pressure, there may be a seen a contraction in margins at the MNC company.
Nestle India, the country's leading FMCG company is set to report its Q2 earnings on Thursday (October 17). As per Zee Business research inputs,consolidated PAT at the Maggi maker may decline 5 per cent on-year to Rs 865 crore as against Rs 908 crore in the same quarter last year. The margins at the company are anticipated to see an impact on account of food inflation as well as volatility in input costs.
There was an exceptional item of Rs 103 crore in the previous year. The revenue at the company is seen to clock 7 per cent growth during September quarter to Rs 5,387 crore. In the same quarter last year, the company reported a revenue of Rs 5,037 crore.
EBITDA or earnings before interest, tax, depreciation and amortisation is estimated to log 5 per cent growth on-year to Rs 1,287 crore as against Rs 1,228 crore last year.
Margins at the company may also see a contraction to 23.9 per cent versus 24.4 per cent in the same period a year-ago.
Market-wise growth forecast
In the domestic business, Nestle may clinch 7 per cent growth during the review period, while the same may go higher to 8 per cent in exports markets. Also, volume-wise there are expectations of 2-3 per cent and in pricing, the growth in value terms may be by 4-5 per cen
Key monitorables
The key focus will be on management's commentary on growth, demand and commodity prices will be keenly watched out for.
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